Other shoe finally drops, giving a boot to our equity…

Posted on Mar 06, 2012 by in Letters

Volatility is like a spring.  Keep pressing it down and compressing it and it stores up energy like an oil well waiting to gush.  Today it's gushing.  We remarked a letter or so ago about the changed mood in the market.  Here it is in spades.  And it is a trading exit signal, for traders.  So never one to wait for the bum's rush (though this may be one) we have bailed on the Qs, the silver, the Dow.  All that's left in the trading portfolio at this point is too much UPRO and TVIX.  The UPRO will be departing shortly.  Note WELL.  These are trades.  The trend stop for investors smarter and more patient than ourselves is back there in Patagonia (the country not the clothes shop).  Illustrated below.

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